If FNB Had Not Overcharged Simon Michael In Interest Rates, His Bond of R64000 Would Have Been Paid Up. Instead He Owes R77000 After 21 Years of Paying

By Pinky Khoabane


Jacque Celliers – FNB CEO

SIMON Michael of Mitchell’s Plain in the Western Cape registered a home loan with Saambou in March 1996 for R64 000. This was the maximum loan for civil servants living in low cost housing at the time. The Saambou mortgage book was later bought by First National Bank (FNB) for R1 after the former collapsed on 9 February 2002. However, it had already bought the Low Cost Housing mortgage book by securitisation in 1998/1999.

Michael now owes the bank R 77 000 after 21 years. The re-calculation of his account revealed that his mortgage loan would have been paid-up on 1 November 2008 had the bank not discriminated against him and over-charged him the agreed interest rate. The Mora calculation on his further payments at the prescribed rate, FNB owes him R 152 000 and his Title Deed.

Michael was initially charged .75% of the Basis Rate. On 1 June 1998 it was reduces to .25%. From February 1999 until November 2001 his interest rate increased by 4% due to discrimination. At present he is charged 14.75% instead of 10.75%.

He, like the thousands other aggrieved clients who have been ripped-off by FNB, await the ruling in the class action case in the Western Cape Equality Court which was scheduled to take place sometime in . But alas, the case has not only been hindered by FNB’s delaying tactics but for two months the court was in recess and thereafter Judge Fortuin, who is to preside over the matter was booked off sick.

How FNB is Ripping-OFF Blacks

In the meantime, Michael has prepared a complaint which he will be submitting to the Human Rights Commission. See the full report to the HRC here Michaels Human Rights Commission


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  1. You know as much as we have so much respect for the Chief Justice, this goes to the heart of the Capture of the Judiciary by Banks as well as blatant Corruption at the Judiciary which our Beloved Chief Justice seems to be unconcerned about. Or incompetent to deal with.

    All the Anti Corruption Priests are focused in one direction and one direction only: Government Corruption.

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